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E-70
u Fixed Percentage Method
Fixed percentage method can be used to calculate
depreciation for a given period, or to calculate the
depreciation rate.
FP
j : depreciation charge for the
jth year
RDVj : remaining depreciable value at the end of
jth
year
I
%:depreciation ratio
u Sum-of-the-Year’s Digits Method
The sum-of-the-year’s-digits method calculates deprecia-
tion for a given period.
SYD
j : depreciation charge for the
jth year
RDVj : remaining depreciable value at the end of
jth
year
100
I%
FP
j = (RDVj–1 + FV ) ×
100
YR1I%
FP
1 = PV ×
12
×
FP
n+1 = RDVn (YR1G12)
RDV
1 = PV – FV – FP1
RDVj = RDVj–1 – FPj
RDVn+1 = 0 (YR1G12)
12
YR1
n' = n –
n (n
+1)
Z =
2
2
(Intg (n' ) +1) (Intg (n' )+2 × Frac(n' ))
SYD
1
=
YR1
12
n
Z
× (PV
– FV )
n'– j+2
Z'
)(PV
– FV
– SYD
1
)( jG1)SYD
j
= (
RDV
1
= PV
– FV
– SYD
1
RDV
j
= RDV
j –1
– SYD
j
n'– (n
+1)+2
Z'
)(PV
– FV
– SYD
1
) ×
(YR1G12)
12–YR1
12
SYD
n+1
= (
Z' =